China state firms set up 150 billion yuan fund to invest in new technologies: Xinhua

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BEIJING (Reuters) - State-owned China Aerospace Science and Technology Corporation (CASC) has teamed up with other government-owned companies for a 150 billion yuan ($21.78 billion) fund to invest in new technologies, the official Xinhua news agency said on Tuesday.

China has been encouraging its industrial firms to rise up the value chain through technical innovation and tougher efficiency standards, with the aim of creating globally competitive conglomerates.

China’s state council in August approved a 200 billion yuan venture capital fund, financed by state controlled entities, to invest in new technologies.

The fund announced by CASC on Tuesday would invest in “emerging strategic industries” such as 3D printing, aerospace, clean energy, high-speed rail, quantum communication and robotics, Xinhua said.

Its other backers include CRRC, Industrial and Commercial Bank of China, Postal Saving Bank of China, Shanghai Pudong Development Bank and the Beijing municipal government.

CASC is a state-owned company that develops and launches rockets, satellites, manned spacecraft and space stations as well as strategic missiles and other weapons.